Investors Academy Part 4: Three ways Debts can be recovered
At Indemo, transparency and education are core to our mission. Recently, a great question was raised in our Telegram channel about Recovery Stages. We’d like to take this opportunity to provide a detailed explanation, clarify how the recovery process works, and share some performance insights with the broader Indemo community.
🔁 The Three Main Recovery (Exit) Scenarios
From day one of acquiring a debt, the servicing company actively works on one of these three recovery strategies:
1. Legal (Judicial) Recovery
This is the scenario shown in the app's Flow view:
- Involves formal legal proceedings.
- Often ends with either a foreclosure auction or a property takeover and sale.
2. Out-of-Court Settlement
This can be quicker and more efficient:
- The debtor may sell the property or restructure/refinance the debt.
- These deals are negotiated outside the courtroom, sometimes putting judicial stages temporarily on hold.
3. Sale on the NPL Market
In certain cases, debts are sold to third-party buyers in the Spanish NPL (non-performing loan) market, often with a margin.
➡️ Important: Only the first scenario is currently visible in the app. The progress of the other two (which can offer faster exits) is not yet reflected on the platform interface.
🔍 Real Examples: What the Past Tells Us
To better understand how these scenarios play out, let’s look at past recoveries on Indemo:
| Debt ID | Exit Type | Final Stage Reached | Time to Exit | Return | ||||
| A81 | NPL Market Sale | Auction Initiated | ~9 months | High | ||||
| A26 | NPL Market Sale | Access to Estate | ~7 months | High | ||||
| A62 | NPL Market Sale | Access to Estate | ~10 months | High | ||||
| A27 | NPL Market Sale | Access to Estate | ~11 months | High | ||||
| A99 | NPL Market Sale | Auction Closed | ~16 months | High | ||||
| A82 | Out-of-Court Settlement | Opposition | ~18 months | High |
These cases show that not all debts need to go through the full legal process to be successfully exited. In fact, quicker, alternative routes have often led to faster recoveries and strong returns.
💼 Upcoming Platform Improvements
We’re actively working to make the recovery process more transparent:
🔄 Secondary Market Feature (Coming around the turn of 2025/2026)
- Investors will be able to sell debts mid-recovery at various stages.
- This allows exit flexibility without waiting for final recovery.
📊 Expanded Recovery Flow Tracking
- We plan to integrate all three recovery scenarios into the interface.
- Together with the Secondary Market launch, you will be able to track alternative recovery progress directly on the platform.
📈 Performance vs. Expectations
The Discounted Debt product is based on a Moderate Performance Scenario as outlined in the Key Information Document (KID). This scenario assumes:
- 90% debt recovery within 18 months.
- Expected return: 15.1% p.a.
👉 Actual past performance to date has exceeded expectations, with an average annual return of 26.4%, thanks to a focus on alternative recovery strategies that deliver faster results.
🧾 Clarifying Step 1: Behind the Scenes Before Recovery Begins
Before what we currently label as “Step 1” in the legal recovery Flow—such as the sending of debtor notifications—there’s an important but invisible prerequisite:
📄 The Spanish court must issue a legal document confirming the new creditor (i.e., Indemo or the servicing entity).
This step is essential to ensure legal standing in the case, and must be completed before any formal legal actions can begin.
⚖️ Why This Isn’t Always Immediately Visible
This initial court confirmation is not currently shown in the app’s Flow, even though it's part of the real-world legal process. It may take weeks or even months, depending on the court’s workload.
🛠️ Improving the Flow: What’s Coming Next
Thanks to thoughtful feedback from investors like you—and the increasingly sophisticated understanding within the Indemo community—we’re working to make the Flow interface clearer and more intuitive.
Here’s what to expect:
- ❌ Removal of overly technical or redundant stages that don’t add value.
- ✅ Addition of new stages that give you a clearer view of what’s really happening.
- 🔄 More transparency into the behind-the-scenes legal steps, like court confirmations, especially when they delay visible progress.
This is all part of our broader initiative to make debt recovery progress more transparent and investor-friendly, both in communication and platform design.
We’re working on:
- A new Performance Page on our website summarizing:
- Status of all current and finished debts.
- Length and outcomes of each recovery phase.
- Final returns per case.
- Status of all current and finished debts.
💬 Community Feedback Highlight:
“It could be interesting to make a table with all the status of your debts, including finished ones, and the length of each different phase.”
✅ Absolutely! This is in progress and will be featured in the new version of our site.
Thank you for your continued engagement and thoughtful questions. Stay tuned for more updates. And as always, don’t hesitate to reach out in the Telegram community or support channels!
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This content is a marketing communication. It shall not be treated as investment advice, independent research or offer, recommendation or invitation to invest in the investment opportunities referred to herein. The content is not aimed at promoting services or products to persons based in jurisdictions where the distribution of said information would be illegal.
Investing in financial instruments involves risk, and there’s no guarantee that investors will get back invested capital. Moreover, past performance does not guarantee future returns. Indemo SIA shall not be responsible for any direct or indirect loss from using the provided information.